Microeconomics Answers

Suppose the short run market price a competitive firm face is Birr 9 and the total cost of the

firm is: TC = 200 + Q + 0.02Q 2. Answer the questions that follow.

(A) Calculate the short run equilibrium output and profit of the firm.

(B) Derive the MC, ATC, and AVC and calculate the values at the short run equilibrium output.

(C) Calculate the producers’ surplus at the equilibrium output.

(D) Find the output level that will make the profit of the firm zero.

list and explain the two turning points of business cycle

With the aid of a diagram, illustrate and explain the firm’s long-run equilibrium position.

The following table provides data on cost of production of product X produced in Bibila farm.

Production of X (Kg)

Total Cost (Rs)

100

1

128

2

148

3

164

4

178

5

190

6

207

7

229

8

259

9

299

10

353

i. Find fixed cost.

Distinguish between positive and normative economics 

What is the difference b/n oligopoly and monopolistically competitive market structure

Ali’s budget line relating good X and good Y has intercept of 50 unit of good X and 20 units of good Y. if the price of good X is 12, what is Ali’s income? What is the price of good Y? What is then slope of budget line?